The data, published on
Friday, found that wages were 1 percent lower at the end of last
year than during the same period in 2001, and nearly 5 percent
lower than they were in 2008.

Despite wages recovering slightly following the 2008 financial
crash, the data also found that most of the recovery was felt by
older workers, particularly those over 60 years old. By contrast,
wages were still down by 9 percent for 22-29 year olds.

“Almost all groups have seen real wages fall since the
recession,” said Jonathan Cribb, who authored the IFS
report.

“Between 2008 and 2014, there is a clear pattern across the
age spectrum, with larger falls in earnings at younger
ages,” he added.

The report also found that British men had taken a hit on their
earnings. The IFS suggests men in particular felt a real terms
decline in wages because more were employed in the private
sector.

Under David Cameron, UK Wages have suffered their most
sustained fall in 160 years, says Tory supporting publication.
pic.twitter.com/ud80kGCtL0

However, women also experienced a fall in their wages, seeing
them decline by 2.5 percent between 2008 and 2014.

While the government has agreed with the IFS findings, it said on
the whole the British economy was performing well.

“This IFS analysis confirms that the UK labor market is
continuing to perform strongly. We are seeing a record number of
people in work, unemployment falling and wage growth accelerating
while inflation falls,” a Treasury spokesperson said.

“UK income equality is now lower than when this government
came into office and the gender pay gap is at its lowest since
records began.

“We understand that the impact of the great recession is
still being felt and so we’ve cut income tax for 26 million
people, frozen fuel duty and frozen council tax. But the job is
not done, which is why we must go on working through the plan
that is securing a better future across the country.”

While the number of people in some form of employment has
increased in Britain since the 2008 recession, the report adds
that the rate of growth in wages has been slowing and warns this
could be a problem for the government as receives less in income
tax receipts than expected.

The Labour Party’s Shadow Work and Pensions Secretary, Rachel
Reeves, said: “This report shows David Cameron has overseen
falling wages and rising insecurity in the labor market. Working
people are £1,600 worse off a year under the Tories.”

With an eye to May’s general election, Reeves added: “We will
raise the National Minimum Wage to at least £8 an hour, get more
homes built, cut business rates for small firms and ensure people
are paid a Living Wage.”

Labour’s stance on the national minimum wage is less radical than
that of the Trades Union Congress, a federation of 54 unions
organizing 6.2 million workers in the UK, which has officially
called for £10 an hour for all workers.